Cb perception motivation-attitude-learning

UNIT-II
1. Consumer Perception – Concept and Process
2. Factors influencing Perception
3. Consumer Motivation – Meaning & Concept
4. Motivational Approaches to Persuasion
5. Consumer Personality – Nature
6. Theories of Personality – Freudian, Neo – Freudian
7. Trait Theory of Personality
8. Consumer Attitude Formation and Change
9. Consumer Learning
10. Consumer Involvement
11. Reference Groups
12. Opinion Leadership
13. Communication Process
14. Social Influences
9/22/2018
By: Dr. Sandeep Solanki, Associate Professor, RNB Global University, Bikaner
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PERCEPTION: is defined as the process by which an individual selects, organizes and interprets stimuli into a meaningful and
coherent picture of the world. It can be described as “how we see the world around us.” Two individuals may be exposed to the
same stimuli under the same apparent conditions, but how each person recognizes, selects, organizes, and interprets these
stimuli is a highly individual process based on each person’s own needs, values and expectations. For example, thanda matlab
Coca-Cola (punchline of the branded soft-drink) may be perceived differently by different consumers, one may prefer it as thirst
quenching product, and another may perceive it as substitute of any other cold beverage available in the market, still some
other may perceive it as ultimate substitute of soda or water. The persuading lines of Coca-Cola may be given different
meanings at different times. Sensation refers to the immediate response of our sensory receptors (eyes, ears, nose, tongue,
fingers) to basic stimuli such as light, color, sound, odor, and texture; also termed as raw sensation. Perception is the process by
which these sensations are selected, organized, and interpreted.
Perception Process work as follows:
Sensation Source Exposure Attention Interpretation
One researcher pointed out that 83 percent of all communications today appeal to sight; also that smell is the
second most important sensory input.
A STIMULUS: is any unit of input to any of these senses. Examples of stimuli (i.e. sensory input) include products, packages, brand names,
advertisements and commercials. Sensory receptors are the human organs (the eyes, ears, nose, mouth and skin) that receives sensory inputs. All
of these functions are called into play, either singly or in combination, in the purchase, use, and evaluation of consumer products. Human
sensitivity refers to the experience of sensation. Sensitivity to stimuli varies with the quality of an individual’s sensory receptors and the amount
(intensity) of the stimuli to which he or she is exposed. 9/22/2018By: Dr. Sandeep Solanki, Associate Professor, RNB Global University, Bikaner
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EXPOSURE could be identified at different levels; 1) the absolute threshold 2) the differential threshold and 3) subliminal perception:
1) ABSOLUTE THRESHOLD: The lowest level at which an individual can experience a sensation is called the absolute threshold.
The point at which a person can detect a difference between ‘something’ and ‘nothing’ is that person’s absolute threshold for that
stimulus. For example, the distance at which a driver can note a specific billboard on a highway is that individual’s absolute
threshold. As our exposure to the stimulus increases, we notice it less, and this is termed as ‘sensory adaptation’. Sensory
adaptation is a problem that concerns many national advertisers, which is why they try to change their advertising campaign
regularly.
2) THE DIFFERENTIAL THRESHOLD: The minimal difference that can be detected between two similar stimuli is called the
differential threshold or the just noticeable difference (j.n.d.). Webers’ Law, as it has come to be known, states that the stronger the
initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different. For example an
increase of Rs. 10 is more noticeable than an increase of Rs. 2 on any retail price of any product.
3) SUBLIMINAL PERCEPTION: People are also motivated/stimulated below their level of conscious awareness: that is, they can
perceive stimuli without being consciously aware that they are doing so. Stimuli that are too weak or too brief to be consciously
seen or heard may nevertheless be strong enough to be perceived by one or more receptor cells. This process is called subliminal
perception, because the stimuli is beneath the threshold or ‘limen’ of conscious awareness, though obviously not beneath the
absolute threshold of the receptors involved.
9/22/2018By: Dr. Sandeep Solanki, Associate Professor, RNB Global University, Bikaner
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ATTENTION refers to the extent to which processing activity is devoted to a particular stimulus. consumers have limits of
attention; they attend to a very small fraction of the marketing communications to which they are exposed and that is available
in the marketplace. Exactly how much information can people handle? According to Harvard psychologist George Miller
(1956), people can attend to seven (plus or minus two) units, or pieces, of information at one time (attention intensity). A unit of
information can be very small – such as a single number, letter, word, or idea – or very large – such as a string of numbers,
letters, words, or ideas. The size of a unit depends on a person’s level of knowledge or expertise: as knowledge increases, the
size of a unit also increases. Selective Attention; according to Kahneman (1973), allocation of attention is influenced by both
voluntary and involuntary factors. People voluntarily attend to information that is relevant to current plans, intentions, and goals.
For example, when consumer plans to buy a new sound system, a new pair of shoes, or a new car, they selectively attend to
information relevant to sound systems, shoes or cars, respectively. However, involuntary influences on attention also exist.
Some marketing stimuli are so attention-drawing that they are difficult to tune out, even when we try to ignore them. Selective
attention is also influenced by factors like vividness, personal interest, concreteness, and proximity. Some products, packages, and
ads “stick out” because they are different and interesting.
THE INTERPRETATION (perceptual) of stimuli is also uniquely individual, because it is based on what individuals expect to
see in light of their previous experiences on the number of plausible explanations they can envision, and on their motives and
interests at the time of perception.
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FACTORS INFLUENCING PERCEPTION:
1. Intensity and Size: The brighter the sound (intensity) or more louder the sound, more likely that the person’s attention is
drawn to it. For instance, advertisers use this characteristics to draw the attention of the readers or viewers. Large sized
advertisement in a newspaper or magazine will be noticed and also read more often than a small insertion given although the
increase in size may not be linear.
2. Position: An advertisement placed next to a compatible editorial column of magazines, and newspaper is thought to attract
more readership response. The even number pages in the newspaper or magazine is assumed to be likely to attract more
readers than the odd number pages. In magazines more readership is obtained when advertisements are put on the cover pages
or within the first 10% of the pages. Similarly, positioning of point-of-purchase, placement of the products (or brands) at
prominent places on the shelves at the retail outlet, rotating bill-boards, hoardings at certain important points is more easily
perceived by consumers and people.
3. Contrast: Human beings have the ability to adapt to sounds, odours, pain, bright lights, neon signs and movements. That is,
human beings are able to use sensory organs to adapt themselves to various stimuli. This is where contrast will help in the
perception process. For instance, Advertisers consider colour ads to be more effective than B&W ads. Sometimes showing an
object or product out of its normal setting will also attract attention, such as a luxury car shown against the backdrop of a beach.
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4. Novelty: It has been observed by marketers that anything which is different from what are normally expected tent to attract
attention like an unusual bottle shape or a perfume strip in a magazine and so on. For instance, Frooti, was the first to introduce
the novel idea of soft drink being offered tin a tetra pack or when Coca Cola or Pepsi were launched in small ‘cans’ during the
World Cup.
5. Repetition: Advertisements are repeated more often to enable consumers for brand recall as well as stimulate them and
create a strong desire for interest in the purchase of the product. For instance in the tooth paste category some of the leading
brands such as ‘Colgate’ or ‘Close-Up’ or ‘Dabur’
6. Movement: Advertisers have also started using billboards or hoardings with movement, mobile vans etc., so as to inject a
feeling of movement into it. Many marketers are finding out smarter ways to reach out to the consumer by organizing some
movementful activities like holding free trials, demonstrations, exhibitions, mobile vans etc. Such exercises could also result in
creating excitement and reinforce top of mind recall. Honda City had also taken its car through the city, answered queries,
allowed prospective customers to test ride the car and so on.
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CONSUMER MOTIVAITON
1. Meaning of Motivation & its Process: The word ‘motivation’ is derived from the Latin word ‘movere’ meaning to move.
‘Motive’ give direction to human behavior. A motive is an inner state that energizes, activates, or moves and directs or channels
behavior towards the goal. Motives could be ‘whys’ of behavior. Sometimes motives are referred to as needs, wants, drives or
impulses within an individual and they work towards achieving the goals. So we can say that motivation is concerned with
needs (the most basic human requirements), drives (tells how these needs translate into behavior) and goals (what these
behaviors aims to achieve).
Motivation refers to the processes that lead people to behave as they do. It occurs when a need is aroused that the consumer
wishes to satisfy. Once a need has been activated, a state of tension exists that drives the consumer to attempt to reduce or
eliminate the need. This need may be utilitarian (a desire to achieve some functional or practical benefit, as when a person loads
up on green vegetables for nutritional reasons) or it may be hedonic (i.e. an experiential need, involving emotional responses or
fantasies). The desired end is consumer’s goal. Marketers try to create products and services that will provide the desired
benefits and permit the consumer to reduce this tension. Whether the need is utilitarian or hedonic, a discrepancy exists between
the consumer’s present state and some ideal state. This gulf creates a state of tension. The magnitude of this tension determines
the urgency the consumer feels to reduce the tension. This degree of arousal is called a drive. Once the goal is attained, tension is
reduced and the motivation recedes (for the time being). Following figure indicates the motivational process and shows that all behavior
is goal oriented:
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Motivation can be described in terms of its strength, or the pull it exerts on the consumer, and its direction, or the particular way
the consumer attempts to reduce motivational tension.
In marketing context, motives can be rational or emotional. Consumers who are ‘rational’ will select the goals after ascertaining
various objective criteria such as size, weight, price etc. And consumers with ‘emotional motive’ will select the goals on the basis
of personal or subjective criteria such as desire for recognition of status, fear, pride, esteem, love etc.
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Motivation can be positive or negative. If an individual experiences a driving force towards an object or person or situation, it is
called ‘positive motivation’. Whereas a driving force compelling the person to move away from someone or something will be
known as ‘negative motivation’. Say, a young executive male gets promoted and is transferred to a new place. This man
(executive) will join the ‘local club’ (a positive goal) so as to gain social recognition and make new friends. The executive’s wife
may join the kitty parties held by the other executive’s, wives to avoid a negative goal – ridiculed by others as an unsociable
person.
2. Maslow’s Need Hierarchy Theory of Motivation:
Maslow formulated a hierarchy of biogenic and psychogenic needs that specifies certain levels of motives – a certain level must
be attained before the next, higher one is activated.
Physiological: “I like to work in the soil.”
Safety: “I feel safe in the garden.”
Social: “I can share my produce with others.”
Esteem: “I can create something of beauty.”
Self-actualization: “My garden gives me a sense of peace.”
Note: Students should be able to associate various products and services in the above hierarchical needs of a consumer.
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3. Motivational Approaches to Persuasion (influences) or Motivational Conflicts:
Because a purchase decision can involve more than one source of motivation, consumers often find themselves in situations in
which different motives, both positive and negative, conflict with one another. Generally three types of motivational conflicts
occur:
i. Approach – Approach Conflict: a person must choose between two desirable alternatives. Or one might have to choose
between two musical CDs at the store. The theory of cognitive dissonance is based on the premise that people have a need for order
and consistency in their lives and that a state of tension is created when beliefs or behaviors conflict with one another. Conflict
raised due to two desirable alternatives could be resolved through a process of cognitive dissonance reduction. People tend to
convince themselves, after the fact, that the choice they made was the smart one by finding additional reasons to support the
alternative they choose, or perhaps by “discovering” flaws with the option they did not choose. A marketer can resolve an
approach-approach conflict by bundling several benefits together.
ii. Approach – Avoidance Conflict: Many of the products and services we desire have negative consequences attached to them
as well. We may feel guilty or ostentatious when buying a status-laden product such as a fur coat. An approach – avoidance
conflicts exists when we desire a goal but wish to avoid it at the same time. Some solutions to these conflicts include the
proliferation of fake furs, which eliminate guild about harming animals to make a fashion statement. Many marketers try to
overcome guild by convincing consumers that they are deserving of luxuries (e.g., when the model for L’Oreal cosmetics
exclaims, “Because I’m worth it!”).
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The concept exemplified is convincing only when one is in a state of ethical dilemma. In the context of use of cosmetic / skincare products,
sometimes despite of availability of inexpensive alternatives, consumers would prefer to buy an expensive product, for more degree of
confidence he/she has in the brand, build due to exposure of repeated advertising in traditional mediums regularly.
iii. Avoidance – Avoidance Conflict: Sometimes consumers find themselves “caught between a rock and a hard place”. They
may face a choice with two undesirable alternatives, for instance, the option of either throwing more money in to an old car or
buying a new one. Marketers frequently address an avoidance-avoidance conflict with messages that stress the unforeseen
benefits of choosing one option (e.g. by emphasizing special credit plans to ease the pain of car payments).
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MOTIVATION
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PERSONALITY: Meaning: As defined by Gordon Allport, personality is, “the dynamic organization within the individual of
those psychophysical systems that determine his unique adjustments to his environment”. Personality has been defined as
patterns of individual behavior which are consistent and enduring. Understanding of personality characteristics can work as
valuable guides for marketers. For example, many popular brands such as Horlicks, Boost, Maltova, Bournvita etc has been
developed to specially cater to the nutritional needs of the varying consumer segments. It was observed that these drinks were
mainly consumed by children who were strong influencers in the family purchase decisions.
An adult’s personality is generally considered to be mad (combination) of both hereditary and environmental factors,
moderated by situational conditions. Heredity refers to those factors that were determined at conception. Physical stature, facial
attractiveness, gender, temperament, muscle composition and reflexes, energy level and biological rhythms are characteristics
that are generally considered to be hereditary elements. Among the factors that exert pressures on our personality formation are
the culture (environment) in which we are raised; our early conditioning; the norms among our family, friends, and social groups;
and other influences that we experience. A third factor, the situation, influences the effects of heredity and environment on
personality. An individuals’ personality, although generally stable and consistent, does change in different situations. The
different demands of different situations call forth different aspects of one’s personality. So one shouldn’t look at personality
patterns in isolation.
The three distinct properties of personality are:
1) Personality will reflect individual differences: No two individuals are alike because their inner characteristics are unique.
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2) Personality is consistent and enduring: Individual’s personality will remain almost the same throughout his or her life. Say,
something about a person that – he is very quiet often.
3) Personality can change: Certain specific events can bring about a change in the individual’s personality, for example, marriage,
birth of a child, death of beloved ones, a significant career promotion etc.
In order to understand the concept of personality, following theories would be much helpful:
1. The Trait Theory
2. Freudian Theory or Psychoanalytic Theory
3. Neo-Freudian Theory
1. THE TRAIT THEORY:
A trait is defined as, “any distinguishing, relatively enduring way in which one individual differs from another”. Trait theorists
are concerned with the construction of personality tests that enable them to pinpoint individual differences in terms of specific
traits such as measuring traits like consumer innovativeness (how receptive a person is to new experiences), consumer
materialism (the degree of the consumers’ attachment to “worldly possessions”), and consumer ethnocentrism (the consumer’s
likelihood to accept or reject foreign-made products).
Consumer Innovativeness; Over the years, the trait of consumer innovativeness has been linked to the need for stimulation,
novelty seeking, and the need for uniqueness. For example, TV ads portraying alternatives for consumer choice in ice-creams &
chocolates, 9/22/2018By: Dr. Sandeep Solanki, Associate Professor, RNB Global University, Bikaner
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a music system with multi-functional utility and mobile instruments & services.
Consumer Materialism; TV ads stimulating a need to possess a luxurious car or latest bike in the market.
Consumer Ethnocentrism; TV ads showing Italian tiles bathroom designs, a car made through German Engineering (Volkwagen).
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2. FREUDIAN THEORY OR PSYCHOANALYTIC THEORY OR FREUDIAN’S STRUCTURAL THEORY:
Sigmund Freud’s Psychoanalytic Theory of Personality; was built on the premise that unconscious needs or drives, especially
sexual and other biological drives, are at the heart of human motivation and personality. Freud proposed that the human
personality consists of three interacting systems; the id, the superego, and the ego. The id was conceptualized as a “warehouse”
of primitive and impulsive drives – basic physiological needs such as thirst, hunger and sex – for which the individual seeks
immediate satisfaction without concern for the specific means of satisfaction. In contrast to the id, the superego is conceptualized
as the individual’s internal expression of society’s moral and ethical codes of conduct. The superego’s role is to see that the
individual satisfies needs in a socially acceptable fashion. Finally, the ego is the individual’s conscious control. It functions as an
internal monitor that attempts to balance the impulsive demands of the id and the sociocultural constraints of the superego.
Freud emphasized that an individual’s personality is formed as he or she passes through a number of distinct stages of infant
and childhood development – oral, anal, phallic, latent and genital. Researchers who apply Freud’s theory on consumer
personality believe that human drives are largely unconscious and that consumers are primarily unaware of their true reasons
for buying what they buy. For example, as portrayed in the TV ad film of AXE deodorant, when boys would use this brand of
deo, girls will be automatically attracted towards them; the ad-film is divulging the id component of the Freud’s interactive
systems of individual personality. In still another TV ad-film of ‘Slice’ (rasiya…..ras barsa jaa) – a soft drink flavor of ‘Pepsi’
company; advertiser has tried to connect the ‘sensuality’ factor with the soft drink by using a film celebrity ‘Katrina Kaif’ as a
source of ‘aamsutra’ – juice of mango.
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2. Freudian Theory or Psychoanalytic Theory or Freudian’s Structural Theory:

3. NEO-FREUDIAN THEORY: According to Neo-Freudian theory, social relationships paly a vital role in the formation and
development of personality. Alfred Adler, for instance, was of the opinion that the basic drive of man is to Strive for Superiority.
Eric Fromm, another neo-Freudian speaks on man’s goal to escape from his bonds (loneliness) and seek, love brotherliness and
security. Yet another neo-Freudian Harry Stack Sullivan was the one to stress on man’s needs for inter-relationships with other
men. He opined that people continuously looked for establishing significant and rewarding relationships with others. He gave a
lot of emphasis on the individual’s efforts to reduce tensions, such as anxiety.
Another social theorist, Karen Horney also felt that the main drive of a man is to cope with anxiety. Horney had proposed to
classify three personality groups of individuals:
1) Compliant (move towards others)
2) Aggressive (move against others)
3) Detached (move away from others)
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CONSUMER ATTITUDE – Meaning:
Attitudes are learned predispositions to respond to an object or class of objects in a consistently favorable or unfavorable way –
Gordon W Allport. As learned predispositions, attitudes have a motivational quality; that is, they might propel a consumer toward
a particular behavior or repel the consumer away from a particular behavior. The word ‘object’ is interpreted to include specific
consumption – or marketing – related concepts such as product, product category, brand, service, possessions, product use,
causes or issues, people, advertisement, Internet site, price, medium, or retailers. There is general agreement that an attitude
“can be conceptualized as a summary evaluation of an object.”
An attitude is the way we think, feel and act towards some aspect of our environment such as a retail store, television
programme or product – Richard E Petty, D T Wegener and I R Fabriger.
Consumer researchers assess attitudes by asking questions or making inferences from behavior. For example, if a researcher
determines from questioning a consumer that she consistently buys ‘Secret’ deodorant and even recommends the product to
friends, the researcher is likely to infer that the consumer possesses a positive attitude toward this brand of deodorant. The
example illustrates that attitudes are not directly observable, but must be inferred from what people say or what they do. It also
suggests that a whole universe of consumer behaviors – consistency of purchases, recommendations to others, top rankings,
beliefs, evaluations, and intentions are related to attitudes.
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A TRICOMPONENT ATTIUDE MODEL OR ABC MODEL:
The most widely held view of the structure of an attitude is that it is made up of three closely interrelated components: Affect,
Behavior and Cognition. A Tricomponent Attiude Model or ABC model was also developed. The first part of the tricomponent
attitude model i.e, the cognitive component, consists of a person’s cognitions, that is, the knowledge and perceptions that are
acquired by a combination of direct experience with the attitude object and related information from various sources. A
consumer’s emotions or feelings about a particular product or brand constitute the affective component of the attitude. These
evaluations are frequently treated by consumer researchers as primarily evaluative in nature; that is, they capture an individual’s
direct assessment of the attitude object. Conation, the final component is concerned with the likelihood or tendency that an
individual will undertake a specific action or behave in a particular way with regard to the attitude object. In marketing &
consumer research, the conative component is frequently treated as an expression of the consumer’ intention to buy.
Viewing attitudes as made up of three components – cognition, affect & behavior – is helpful in understanding their complexity
and the potential relationship between attitudes and behavior. But for clarity’s sake, it has to be kept in mind that the term
attitude essentially refers to the affect part of the three components. If television commercial of ‘Lakme’ is successful in its
attempt to portray its image of high social recognition & status and ‘arouse’ to alter consumer’s attitude favorably toward its
product; that attitude may lead a female consumer – to a desirable behavior (for Lakme advertisers) – to purchase the
advertised product.
9/22/2018
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ATTITUDE FORMATION:
It is important to recognize that much of what has been said about attitude formation is also basically true of attitude change. That
is, attitude changes are learned; they are influenced by personal experience and other sources of information, and personality affects
both the receptivity and the speed with which attitudes are likely to be altered. There is a general agreement that attitudes are
learned. This means that attitudes relevant to purchase behavior are formed as a result of direct experience with the product,
word-of-mouth information acquired from others, or exposure to mass-media advertising, the Internet, and various forms of
direct marketing (e.g. retailer’s catalog).
The formation of attitude is strongly influenced by personal experience and the influence of family and friends, direct marketing,
mass media and the internet. Consumers are constantly exposed to new ideas, products, opinions, and advertisements through
variety of special-interest magazines, and television channels. These mass media communications provide an important source
of information that influences the formation of consumer attitudes. Other studies indicates that for consumers who lack direct
experience with a product, exposure to an emotionally appealing advertising message is more likely to create an attitude towards the
product than for consumers who have beforehand secured direct experience with the product category. Consumer’s reactions to
a product are also influenced by their evaluations of its advertising, over and above their feelings about the product itself.
Evaluation of a product can be determined solely by the appraisal of how it is depicted in marketing communications – we don’t
hesitate to form attitudes toward products we’ve never even seen in person, much less used. One special type of attitude object,
then, is the marketing message itself.
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A brand communicates with the consumer through a set of communication mix such as advertising – print, broadcast, radio and
outdoor, direct or database marketing, personal selling, sales promotions – coupons, sampling, premiums, sweepstakes, low-cost
financing deals, rebates etc, trade promotions – slotting allowances, allowances for featuring the product in retail advertising,
display and merchandising allowances and the like, point-of-purchase materials placed in stores, electronic billboards in malls &
streets, hoardings on the roadside, interactive marketing through internet, communication through mobile services, publicity or PR –
contests, cause related marketing, product placements in TV shows and Films, event or sports marketing and many more.
According to one of the hypothetical model of attitude formation termed as “Components Model of Consumer Attitude
Formation through TVCs of FMCG”, it exhibits the impact of persuasive flow of cues from point A to point B. Here point A
refers to the external stimulus i.e. TV Commercial and point B refers the inherent formation of attitude towards the advertised
product. It suggests that favorable attitude formation is the result of cumulative effect of four major components –
I. Persuasive Cues of the Stimulus (TVC)
II. Perceptual Synthesis
III. Consumer Comprehension about the Stimulus
IV. Storage in Consumer Memory. And the unfavorable attitude formation is the result of absence of any one of the four
components.
See the following figure:
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CONSUMER LEARNING
Meaning of Learning: Learning is a relatively permanent change in behavior caused by experience. From a marketing perspective,
consumer learning can be thought of as the process by which individuals acquire the purchase and consumption knowledge
and experience that they apply to future related behavior.
Consumer learning is a process; that is, it continually evolves and changes as a result of newly acquired knowledge (from reading,
discussion, observation or thinking) or from actual experience. Knowledge & Experience both serve as feedback to the individual
and provide basis for future behavior in similar situations. The role of experience in learning does not mean that all learning is
deliberately sought. Though much learning is intentional, a great deal of learning is also incidental, acquired by accident or
without much effort. Some ads may induce learning, even though the consumer’s attention is elsewhere, whereas few others are
sought out and carefully read by consumers contemplating a major purchase decision. For example if a consumer deliberately
search about the product attributes needed, he is into the intentional learning, say buying a new refrigerator; whereas an
incidental learning is said to have occurred when the consumer learn about the brand such as Coke or Lakme, even though he
may not have consumed the same.
The elements included in most learning theories are;
1) Motivation,
2) Cues,
3) Response and
4) Reinforcement. 9/22/2018
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1) Motivation is based on needs and goals and acts as a spur to learning. For instance, a young working executive is interested to
purchase a fully automatic washing machine, to save time, he will be motivated to get all information related to such a washing
machine, like comparing prices and features of brands available in the market, learning its functional utilities etc.
2) Cue stimuli can be any object existing in the environment, as perceived by the individual. Cues are the stimuli that give
direction to these motives. For instance, seeing an advertisement for ‘a holiday package to Europe’ may act as a cue for an
executive, who may suddenly realize that by going for this tour package, he will be able to cherish his dream of vising Europe
with family.
3) How individuals react to a drive or cue – how they behave – constitute their response. The response may be in the physical
form or may be in terms of complex phenomena such as attributes, familiarity, perception, etc. For example, Hero Honda’s
launch of scooter ‘Pleasure’ customized for women and with a tagline – ‘why should boys have all the fun?’
4) Reinforcement (or reward – positive or negative) increased the likelihood that a specific response will occur in the future as the
result of particular cues or stimuli. Reinforcement is very basic to learning. Without reinforcement, we cannot observe any
measurable modification of behavior. For instance, suppose one is going to have a masala dosa at an Udipi restaurant. Assume
a new joint has recently opened near to your college. You visit this new joint with certain expectations based on your previous
experience (reinforcement) of having a masala dosa at an Udipi restaurant. If your past experience with regard to the taste, size,
ambience, service, sitting arrangements etc. had been positive, you may continue to patronize the brand, otherwise not.
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Pavlov’s Classical theory of Consumer Learning:
Early classical conditioning theorists regarded all organisms (both animal and social animal) as relatively passive entities that
could be taught certain behaviors through repetition (i.e, conditioning). Ivan Pavlov, a Russian physiologist, was the first to
describe conditioning and to propose it as a general model of how learning occurs. According to Pavlov theory, conditioned
learning results when a stimulus that is paired with another stimulus that elicits a known response serves to produce the same
response when used alone. It is depicted in following figure.
Fig. Kylie Minogue starring in the Lexus CT 200 "Quiet Revolution" advert
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CONSUMER INVOLVEMENT THEORY: developed from a stream of research called hemi-spheral lateralization, or split-
brain theory. The basic premise of split-brain theory is that the right and left hemisphere of the brain “specialize” in the kinds of
information they process. The left hemisphere is primarily responsible for cognitive activities such as reading, speaking, and
attributional information processing. Unlike the left hemisphere, the right hemisphere of the brain is concerned with
nonverbal, timeless, pictorial, and holistic information. Put another way, the left side of the brain is rational, active, and realistic;
the right side is emotional, metaphoric, impulsive, and intuitive. Building on the notion of hemi-spheral lateralization, a pioneer
consumer researcher theorized that individuals passively process and store right-brain information – that is, without active
involvement. Because TV is primarily a pictorial medium, TV viewing was considered a right-brain activity (passive and holistic
processing of images viewed on the screen), and TV itself was therefore considered a low-involvement medium. This research
concluded that passive learning occurs through repeated exposures to a TV commercial (i.e., low-involvement processing) and
produces changes in consumer behavior (e.g., product purchases) prior to changes in the consumer’s attitude toward the
product. Many advertisers believe that the level of involvement during message processing plays a crucial role in determining
which route of persuasion is likely to be more effective. The degree of involvement will also vary with the product required, say
a high involvement of consumers’ mind to buy a car, comparatively to buy a routine product like washing powder. Also shown
in the following figure:
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REFERENCE GROUP
REFERENCE GROUPS have certain roles and standards on the code of conduct which will have a direct influence on the
individual’s purchasing behavior. For example, the family will influence the child’s eating habits, the peer group will affect
the teenager’s television viewing and reading habits and the organizational group can exert influence on what the
individual wears to office and his spending pattern. This often is used as a self concept, where reference groups works as
the point of comparison.
There are three factors based on which the group can exert influence on an individual’s purchasing behavior:
1) The individual’s attitude towards the group: His or her purchasing behavior will get affected if, the group is
acknowledged as credible source of information; the person gives due weightage (and values) to the views and
reactions of the group members; and accepts the rewards/sanctions or punishment given by the group for appropriate
or inappropriate behavior.
2) The nature of the group: The members are more cohesive and have similar norms and values; the members interact
frequently; and if the members are highly valued and considered distinctive and exclusive to get attracted.
3) The nature of the product: For example, in case of products such as clothes, cosmetics, furniture or perfumes, they
connote status and prestige to interact with group members. 9/22/2018
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REFERENCE GROUP
Reference Group Characteristics influencing CB: Broadly referred as follows:
1. Group Norms: These are undefined or undocumented rules and standards of conduct which the group establishes and
the members are required to conform to them. These may relate to the appropriate wearing, eating habits, type of car or
mobile, jewellery or cosmetic brands.
2. Values: These refer to the shared beliefs among group members as to which behaviors are desirable and those which
are undesirable. Of course, values are largely defined by cultures and sub-cultures but could vary to a great extent
depending upon, the family and peer pressure. Say, a conflicting thought between adherence to social status versus
individual freedom.
3. Roles: These are functions that the group assigns to individual, so as to attain the group objectives. For example in case
of family decision making, one can be influencer, another can be decision maker and yet another can be buyer or user.
4. Status: refers to the position the individual is accorded within the group. The symbolic representation of status is seen in
the type of dress, ownership of certain products, membership to certain clubs and so on.
5. Socialization: When an individual learns the group norms and role expectations, socialization is said to take place. A
consumer learns the informal rules and expectation among societal members, while consuming certain products.
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REFERENCE GROUP
6. Power: The group is able to exert influence on an individual’s behavior through following types of power:
a) Expert Power: The consumer will treat the source of information (either friend or relative or sales person) to have
expert power only if convinced about the source’s credibility or knowledge or experience with the product.
b) Referent Power: As the term indicates it is the individual’s identification with the referent group; more the similarity
between the attitudes and beliefs, more will be the referent power.
c) Reward Power: This is in reference to the group’s ability to reward a person associated with them. Such reward is
through complimenting the member on his or her purchase decision.
Types of Reference Groups:
1) Normative Reference Group: Family to a child
2) Comparative Reference Group: Neighbors moving in residential complexes
3) Indirect Reference Group: Fans and the Celebrities
4) Information Reference Group: Considered as credible source of information
5) Aspirational Reference Group: Fashion or Cosmetics
6) Disclaimant Group: Opposite or reverse to the norms of the group; generally in political ideologies
7) Avoidance Group: Disapproving the values of such group, say using nutritional supplements to build body muscles
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OPINION LEADERSHIP
OPINION LEADERSHIP: is the process by which one person (opinion leader) informally influences the actions or attitudes of
others, who may be opinion seekers or merely opinion recipients. This emphasizes on informal influence, also termed as
word-of-mouth communication.
Characteristics of Opinion Leaders:
1. Opinion Leaders are perceived to be highly credible sources of product related information.
2. Opinion leaders are gregarious and are people with experiences
3. Opinion leaders usually provide unbiased information, that is they provide both favorable and unfavorable information
to their opinion seekers
4. Opinion leaders are both sources of information and advice.
5. Opinion leaders have got greater exposure to the media, especially in their area of leadership
6. Opinion leaders tend to be consumer innovators
7. Opinion leaders have go some personal product specific characteristic like personality traits, social status and
demographic features
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OPINION LEADERSHIP
Opinion Leadership and Marketing Strategies:
A. Stimulate Positive Word of Mouth Communication
B. Stimulate Word of Mouth to induce product trial
C. Stimulate Word of Mouth through direct selling
D. Stimulate Word of Mouth through Experience and Advertising.
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CONSUMER COMMUNICATION PROCESS
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Marketing Communication
Marketers must be excellent communicators. Why? They have to be able to educate, persuade and convince
consumers to purchase their products. The basic building block of marketing is effective communication,
which is the process by which we exchange or share meanings through a common set of symbols.
A local candy company, Sugar Rush, LLC, spends an enormous amount of time developing an effective
marketing promotional communications plan. They have to make sure that they are reaching their core target
market with effective product messaging through mass communication. This involves the communication of a
concept or message to a large audience. Sugar Rush also has a large sales force in which they rely
upon interpersonal communication methods in order to increase their sales distribution. The sales force uses
direct, face-to-face communication between two or more people. There is a specific consumer communication
process that occurs with a promotional message.
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The Sender and Encoding:
Sugar Rush's new television commercial focuses on their new candy called Jolt. Jolt is flavored sugar packets with fun
names such as wacky watermelon, cool cotton candy and pep pumpkin.
There is a specific process that a marketing manager must ensure happens to get their promotional message to the
consumer. The first part of the process revolves around the sender. The sender is usually a marketing manager, advertising
manager or advertising agency who is the creator of the communication message. In Sugar Rush's example, the sender
would be the advertising agency that developed the new television commercial for Jolt.
The second part of the process incorporates the encoding of the message. The encoding is a process where the sender's
message or ideas are put into some type of words or signs. The end result of the encoding is what the receiver hears. Sugar
Rush's television ad is how their message is encoded to be communicated to the consumer. Other types of encoding are
coupons, displays or outdoor ads.
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Communication Channel:
Marketing communications (MC, marcom(s), marcomm(s)) uses different marketing channels and tools in
combination. Marketing communication channels focuses on any way a business communicates a message to its
desired market, or the market in general. A marketing communication tool can be anything
from: advertising, personal selling, direct marketing, sponsorship, communication, promotion and public relations.
The process allows the public businesses use to know or understand a brand. Successful branding involves targeting
audiences who appreciate the organization's marketing program.
The marketing plan identifies key opportunities and threats, set objectives and develops an action plan to achieve
marketing goals. Each section of the 4P's sets its own object; for instance, the pricing objective might be to increase
sales in a certain geographical market by pricing their own product or service lower than their competitors. This
creates a significant change in the market because more people of the target market would aim to do business with
your organization than your competitors, because pricing is one of the most significant aspects of marketing that can
change the whole market positively and or negatively.
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SOCIAL INFLUENCES
SOCIAL STRATIFICATION: is the division of members of a society into a hierarchy of distinct status classes, so that members
of each class have relatively the same status and members of all other classes have either more or less status. It is the
ranking of people in a society by other members into higher and lower positions so as to produce a hierarchy of respect or
prestige. When we talk of the Indian society, it implies that the certain members of the society are ranked higher than
others on the basis of income, education, profession (or occupation) and other intangibles like lifestyles, one’s influence
and connections, political power and social service. All the people do not have the same power, prestige, similar
possessions, share the same value system and also act discriminately with individuals of the low social class having lesser
power, prestige and status.
SOCIAL CLASS: is the relative standing of the members of the society so that a higher position implies a higher status than
those in the lower class. The determinants of a social class is decided by the income, occupation, place of residence etc. of
the individual members of the society. The members of a particular social class will enjoy more or less the same status and
prestige in the community. Although income is an important factor in deciding a person’s social class, even one’s education
and profession can be used for determining one’s social class. For instance, social class depends considerably on one’s
education. 9/22/2018
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SOCIAL INFLUENCES
SYMBOLIC IDENTIFICATION OF STATUS:
1) Insignia – Mark of qualitative differentiating people of different status.
2) Titles and Designations – People are identified based on the various titles and designations they carry with them. A person
who falls into the high-class society will adorn herself with a RADO watch or GUCCI accessories.
3) Pay and Perquisites – Generally organizations award their employees salary and perquisites based on their job functions. So it
is natural that a person occupying a higher grade will enjoy higher status and certain perquisites due to him based on his
higher level status as compared to a person occupying a lower grade in the organizations. Thus CEO of a company will prefer
to fly business class while the executive may fly economy class or obtain for the frills free airlines.
4) Physical Facilities – Status of people can be distinguished on the basis of various facilities provided to them by a company at
work place and at home. Top executives of companies or people who are granted as occupying higher status in the society are
provided at place of work exclusive rooms with excellent finishing, exclusive parking places etc. They are also located luxury
manors, membership of elite group/clubs etc. to take care of their home needs.
Typically, homes, clothes, cars, jewellery etc. are the indicators of the possessions of the particular social class. Indians have always
had a penchant for jewellery and buying of diamonds was treated to be the exclusive privilege and status symbol of the rich or
higher class. The new consumer is home-maker, whose lifestyle is inspired by fashionably attired ‘bahu-beti television serials.
They are looking for trendy, affordable, lightweight jewellery which can be worn on multiple occasions and which they would 9/22/2018
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SOCIAL INFLUENCES
SOCIAL CLASS CHARACTERISTICS:
1. Social class suggests Rank Ordering: (social prestige accorded to particular social class)
2. Social classes are relatively permanent: (particularly in a family form)
3. Social classes have internal homogeneity: (like eating habits, rituals etc.)
4. Social classes have intergenerational class mobility: (acquiring the values & behaviors of the shifting class)
5. Social class considers determinants other than income: (having a political clout or high education)
CHARACTERISTIC FEATURES HAVING RELEVANCE TO MARKETING:
1. Persons within a given social class tend to behave more alike (in terms of lifestyle, values, interest and behavior pattern)
2. Social Class is Hierarchical (ranked as inferior or superior, say, designer dress by elite class, silk sarees by middle and
cotton garments by lower class)
3. Social class in not measured by single variable but is measured as a weighted function of one’s occupation, income,
wealth, education, status, prestige etc.
4. Social class is continuous rather than concrete, with individuals able to move into higher or drop into lower class (ex:
Karsanbhai of Nirma and Narayana Murthy of Infosys)
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